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Cattle Liquidation

Published on: 02:12AM Dec 21, 2017

Cattle Commentary:  Cattle futures were in liquidation mode again today with feeders leading the way.  January feeders finished the day 3.30 lower at 139.975, this after trading in a range of 4.125.  Trade on the Fed Cattle Exchange was light with 239 out of 466 sold at 120.  Shortly after we saw a more active trade at 120 in Texas and Kansas; dressed came in at 190, relatively steady with last week’s cash trade.  This is the most active trade we have seen for this time of week in what seems like a long time.  Some of the pressure is likely some position squaring/long liquidation from net long funds ahead of Fridays Cattle on Feed and Cold Storage report.  Some early cattle on feed estimates are out with on feed expectations near 106.7, placements near 105.7, and marketed near 103.  We will have estimates for Fridays Cold Storage report in tomorrow’s Livestock Roundup.  Choice boxed beef took a leg lower today narrowing the choice/select spread. 

 

PM Boxed Beef                       Choice            Select 
Current Cutout Values:           198.09            185.49
Change from prior day:           -3.67               1.17
Choice/Select spread:             12.60

 

Cattle Technicals

 

Live Cattle (February)

 

February live cattle opened up mixed but started to roll over after the first 30 minutes of trade.  Stops below yesterdays lows were triggered which led to accelerated selling pressure and long liquidation from funds.  The market managed to find buying interest at 118.15; the inability to break below last Wednesday’s low of 118.125 then led to some lighter volume covering which ultimately.......Please sign up for a Free Trial to see our entire technical outlook and proprietary bias and levels.

 

Feeder Cattle (January)

 

January feeder cattle have trimmed as much as 7.875 from the high to low over the course of just three sessions.  This pressure has brought the RSI down near the record lows for this January contract.  143 was the line in the sand that the bulls wanted to.........Please sign up for a Free Trial to see our entire technical outlook and proprietary bias and levels.

 

Lean Hog Commentary & Technicals

 

Like cattle, lean hog futures were on a bit of a roller coaster today but to the upside.  February lean hogs finished the session up 1.70 at 68.60, this after trading in a range of 1.825 on the day.    The market was relatively quiet to start the day, holding the 50% retracement and 100 day moving average relatively well near that 77.00 level.   At 10 a.m.  we saw.........Please sign up for a Free Trial to see our entire technical outlook and proprietary bias and levels.

 

 

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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.